CHKP soars, gaining $2.94 (2.71%) within a single day on high volume
Check Point Software Technologies Ltd. (CHKP) Technical Analysis Report for Jul 06, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, CHKP ended Monday at 111.53 surging $2.94 (2.71%) on high volume, slightly outperforming the Nasdaq 100 (2.54%). This is the biggest single-day gain in over two months. Today's close at 111.53 marks the highest recorded closing price since June 8th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 109.92, the share confirmed its breakout through the prior session high after trading up to $1.62 above it intraday.
Daily Candlestick Chart (CHKP as at Jul 06, 2020):
Monday's trading range has been $2.28 (2.08%), that's slightly below the last trading month's daily average range of $2.49. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CHKP.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 109.99 (now S1), which is likely to act as support going forward. The last time this happened on May 11th, CHKP actually lost -2.71% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying might move prices higher should the market test June's nearby high at 112.96.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Check Point. Out of 41 times, CHKP closed higher 58.54% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 65.85% with an average market move of 0.69%.